JPMorgan predicts that Bitcoin will reach $170,000 within a year

Source: PortaldoBitcoin Original Title: JPMorgan predicts Bitcoin will reach $170,000 within a year Original Link: JPMorgan stated that it maintains its projection that the price of Bitcoin could reach $170,000 in the next six to 12 months. According to the bank, the estimate is based on a volatility model that relates BTC to gold.

The report, led by analyst Nikolaos Panigirtzoglou, highlights another key point for the prediction: the strength of the company that holds the largest corporate Bitcoin reserve in the world. JPMorgan notes that the company’s adjusted net asset value indicator (mNAV) is at 1.13—below 1.0, the asset would start to face forced selling pressure.

“It is encouraging that the company’s mNAV is still above 1.0,” the report states.

The projections remain even after Bitcoin’s recent sharp decline. Among the factors pointed out by analysts for the drop are renewed pressure on mining in China and miners in other regions selling reserves due to high energy costs.

Bitcoin is trading in the $88,000 range, after hitting an all-time high of $126,000 on October 6.

BTC and gold relationship

At the beginning of November, JPMorgan released its $170,000 forecast after seeing an increase in gold’s volatility, which would have made Bitcoin more appealing in risk-adjusted terms.

At that time, the volatility ratio between the two assets dropped to 1.8. Based on this parameter, the bank estimated that BTC’s market capitalization would need to rise 67% to reach the level of private investment in gold, which would imply a theoretical price close to $170,000.